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Gmroi Calculator

Free Gmroi Calculator with instant browser-based results and a clear calculation breakdown.

GMROI Calculator

Gross Margin Return on Investment

Gross Margin ($)

Please enter a valid positive number

Average Inventory Cost ($)

Please enter a valid positive number greater than zero

Your GMROI is:

0.00

Gross Margin Return on Investment (GMROI) measures how much gross profit you earn for every dollar invested in inventory.

GMROI = Gross Margin ÷ Average Inventory Cost

Interpretation:

• GMROI > 1: You're earning more than your inventory investment (profitable)

• GMROI = 1: Breaking even on inventory investment

• GMROI < 1: Losing money on inventory investment

A higher GMROI indicates better inventory performance. Most retailers aim for a GMROI of 2.0 or higher.

Want to understand the calculation?

See examples, formula notes and limitations.